If the vehicle is detained due to fire or theft, who is responsible for compensation in Vietnam?

Recently, there have been cases of fire in the storage of vehicles and vehicles in violation of traffic laws. So, when a vehicle is in traffic detention due to fire or theft, who is responsible for compensation in Vietnam?

If the vehicle is detained due to fire or theft, who is responsible for compensation in Vietnam? (Illustration)

*Responsibilities of persons directly managing and preserving vehicles in Vietnam:

- According to Clause 5, Article 125 of the Law on Handling of Administrative Violations 2012 (amended by Point a, Clause 64, Article 1 of the Law on Handling of Administrative Violations 2020), it is stipulated: "The person making the custody minutes and the person making the custody decision in Vietnam shall be responsible for preserving the exhibits, administrative violation means, licenses and practice certificates.

In case of violation of administrative acts, licenses or practice certificates, illegal sale, fraudulent exchange or damage, loss of components or replacement, the custody decision makers shall be responsible for compensation and be handled in accordance with law. "

- Pursuant to Article 9 of Decree 138/2021/ND-CP , which regulates the management and preservation of administrative infringements in custody or confiscation, the person issuing the custody decision is responsible for the management and preservation of exhibits and vehicles held in Vietnam.

Therefore, persons directly managing and preserving vehicles must be responsible before the law and decision makers to temporarily keep vehicles.

*Responsibility for compensation coordination of insurance, insurance enterprises in Vietnam:

-According to Article 17 of the Law on Insurance Business in 2000 (amended and supplemented in 2019) , if the vehicle owner has material insurance (voluntary insurance), he/she has the right to request insurance, insurance enterprises in Vietnam to compensate him/her.

After that, the insurance company or the insurer will have the right to request the person directly managing and preserving the vehicle or the person at fault who caused the fire to reimburse him or her for the compensation previously paid.

However, if the damage occurs due to a force majeure event, the insurance company in Vietnam must compensate the owner of the motor vehicle.

The insurance company or the insurer does not have the right to request the person directly responsible for managing the vehicle to reimburse because he/she has no fault in causing the damage, so he/she is exempt from liability for damages.

In addition, the handling of the consequences caused by the fire is complicated, because the main asset is a vehicle held in custody pending disposal by the violator in Vietnam or a vehicle that has been confiscated pending auction around the state public fund or a vehicle that is an unclaimed asset pending verification, etc.

Therefore, the determination of liability for compensation when vehicles violating traffic regulations are detained, burned or stolen must wait for the conclusion of the investigating bodies to take appropriate measures for each specific case.

Nhu Mai

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